Conference nyoss1::market_investing

    
    his account must have his social security number not yours. IF it
    has yours, you owe the tax. 
    
    the first 500 dollars earned by a child is tax-free. You report it
    on the childs return. If he earned over 500 dollars he has to pay
    tax. 

    
    question 2: 
    
    there is no deduction for federal taxes paid. 

    
    Remember that your child (since he's under fourteen) owes tax at
    YOUR tax rate.  You may want to reassess where you have his savings
    because of that.

    Yes, my son's account belongs to his ssn.  Do I have to file a return
    for my son in order to declare his interest (< $500) as tax free ?

>    Yes, my son's account belongs to his ssn.  Do I have to file a return
>    for my son in order to declare his interest (< $500) as tax free ?
    
    Not unless taxes were witheld by the bank for some strange reason
    (backup witholding?).  It might be a little tough to get an
    1.5-year-old to sign a tax form, anyway ;^)
    

    Sorry to fracture the preceding discussion, but I have a question
    regarding the deductability of home mortgage interest:
    
    I work 100% out of a home office and qualify for deducting the
    proportionate amount as a miscellaneous expense (two rooms out of 8
    equals 25%). In the past, II haven't included mortgage interest among
    my home office deductions, because I was already claiming it elsewhere
    on the itemized deductions form. But re-reading the instructions this
    year, I wondered whether I could actually get a double deduction: list
    the total amount of mortgage interest paid on the appropriate line on
    Sched. A, and also list 25% of that amount elsewhere as a home office
    deduction.
    
    This doesn't sound right to me, but I'd hate to miss out on a deduction
    if I'm entitled to it. Anyone have any experience with this?
    
    Brian

    
    I have few questions on Tax forms (Federal & MA Form 1-NR). I would
    appreciate any replies:
    
    My situation is:
    
    For first 6 months - work in NH/live in NH
    For last 6 months - work in MA/live in NH -  
    
    Federal 1040:
    ======-=====
    
    O Is there any place on 1040 to deduct state taxes to be paid for 1991
      in 1992? If so, the line #?
    
    O I was on MA workman's comp for the last 6 months - I reimbursed the
      workman's check to Digital & was getting the full salary from
      Digital. W2 shows (regular salary minus comp's reimbursement).
      Is there any tax implications/deductions to be considered?
      If there is anybody with similar situation, I would appreciate any
      comments/hints.
    
    MA Form 1-NR:
    ============
    
    O Line 11: Taxable income from Mass Banks - 
               
           Is complete interest from DCU to be reported here or
           prorated for 6 months?
    
    O Line 34: Interest & dividends from Mass Source only -
    
           Are dividend distributions from Mutual funds to be
           included?
    
    O Line 35: Capital gains (real & tangible only) -
    
           If there any capital gains from stocks (eg: DEC stocks!!!) and
           any Mutual Funds, are they to be included? (are they
           considered to be tangible?)
    
    O This is the first time I have to fill in MA state tax form - so, 
      I would appreciate any guidance so that I don't miss out. 

re .7:

>    O Is there any place on 1040 to deduct state taxes to be paid for 1991
>      in 1992? If so, the line #?

If you paid the taxes in 1992 (e.g. you were underwithheld), you have to wait
until next year.  If you're talking about withholding that you paid in 1991,
it's on schedule A.

    Re: .6
    
    Claim the "business use" percentage as a business expense on the "C". 
    (Goodness- it reduces social security tax and reduces AGI)
    Claim the *remaining* amount on the schedule "A".
    
    No double-dipping is allowed.
    
    SteveSov

    
    re .8
    
    O If I don't itemize for Sch.A, is it still possible to deduct the
      state taxes withheld?
    
    O Also, do I have to report capital gains/losses & distributions (if
      any) for MA tax (Form 1-NR). The tax guide says "only Mass. source
      (tangible?) capital gains/losses to be reported. Does that mean
      things like DEC stocks & mutual funds are not tangible for MA tax
      purposes. Please clarify.
    
    === Raj
     

>    O If I don't itemize for Sch.A, is it still possible to deduct the
>      state taxes withheld?

No.

    
>    O Also, do I have to report capital gains/losses & distributions (if
>      any) for MA tax (Form 1-NR). The tax guide says "only Mass. source
>      (tangible?) capital gains/losses to be reported. Does that mean
>      things like DEC stocks & mutual funds are not tangible for MA tax
>      purposes. Please clarify.
    
Never having filed a Mass non-resident return, I don't know.  My guess is
that they're talking about capital transactions on things like Mass real
estate, businesses, etc.

    Re .11, .10
    
    Stocks and mutual funds are not considered Mass.-related, provided
    you are a non-resident.  On the other hand, if you owned real estate
    in Mass. and sold it, you would be required to pay capital gains
    tax on the profit, even 'though you were a resident elsewhere.
    
    PBM
    non-CFP,ChFC,CLU or anything else like that so don't sue me

	I am filing form 2441 for child care expenses. 

	I was enrolled in the Dependent Care program offered by DEC.

	Suppose that I put in X$ thru' DCRA which was reported on my W-2,
	but I spent Y$ (Y>X) for actual childcare. So I should be claiming 
	the credit for the remaining Y-X dollars, right? At the top of form
	2441, I should report paying Y dollars to our child-care provider, but
	in line 4, I should only report Y-X as the qualified expenses?

	I was confused doing the forms, since the example they had in Pub. 303
	and the instructions were not very clear.

	TIA for the clarification.

    You put the provider information and $ paid on the top of the front
    page.  Then, go to the second page (or the back of the form) and work
    through the calculations there.  That process can limit, or even
    eliminate the credit amount on the front.
    
    Some examples:
    
    Suppose you have 1 child, and spent $300/month on childcare.  Also, you
    put $300/month into your DCRA.  The $3600 is reported on your W-2 as
    Dependent Care Benefits (DCB), but not as income. You work the 3600 out
    on the second page of the form...none of it is taxable, but there is no
    credit.
    
    Now, suppose you put $350/month into your DCRA, same expenses.  In this
    case, $4200 is reported as DCB on your W-2.  You work out the 3600 you
    actually spent, and the extra $600 is "forfeited" on line 18.
    
    Now, suppose you only put $250/month into your DCRA, same expenses.  In
    this case, $3000 is reported as DCB on your W-2.  You work out the 3000
    you received on the second page.  You carry the figures to the front and
    do the calculations there.  Alas, you find that you have had a tax
    benefit for more than the $2400 (1-child) limit.  Consequently, none of
    the remaining $600 that you actually spent does you any good. :-(
    
    SteveSov

	Re. .14

	Steve,

	Thanx for the reply. 

	I should have given more details in .13, viz., that our total expenses
	were only 944, below the 2400 limit for one child, while our DCRA
	contributions were 864.(My wife only got back to work in the last 
	2.5 months of the year.). So there is a difference of 80 that I want to
	claim credit for. 

	All the examples you gave assumed expenses of more than 2400 limit.
	Do I put 944 in the provider information, and only 80 in the qualified
	expenses? Somehow, working thru' the form, it seemed like I could put
	944 in line 4 (qual. expenses) as well, which does not look right 
	(although I would love to have that much credit :-).

	-amitabh.

    I think you're on the right track.
    
    I don't have one of the forms right here, but I think you put the 944
    as qualified expenses, then subtract out the 864 in the calculations
    that go in the "indented" column (lines 5/6 ?).  Give the form a close
    looking at, and it should explain itself.  If you don't figure it out,
    let me know and I'll fetch a form and explain.
    
    It should work out so you get the (look-it-up-in-the-table)% credit for
    the $80.
    
    SteveSov

    Are Massachusetts Income Taxes deductable for people who can 
    itemize on Schedule A (Fed. tax return)?
    
    jk

    Yes.  (Good thing too - nothing like being threatened with having to pay
    taxes on money you already paid out as taxes to some other palm-out
    government...)
    
    /Charlotte

Yes, but if you get a refund from the state and you had itemized your deductions
that year including taking the deduction for state taxes paid, you must claim
the refund as ordinary income.  Usually, the state will send you a W-2 or
some such form with that information on it.  Conversely, if you owed the state
last year, you can add the amount you paid them for taxes owed to the amount
that was withheld for state taxes and deduct the whole thing on Schedule A.
It's all pretty much explained in the instructions that come with your 1040.